TVS, Eicher Motors may be the best bets among two-wheeler stocks; check why

On the other hand, Bajaj-Auto and Hero Moto Corp need to adhere their key supports levels to keep the positive bias intact.

Whenever a stock outperforms the benchmark indices, especially in times when the overall markets are volatile and unpredictable, the trading fraternity tends to set a closer eye on such stocks. This is the case with two-wheeler stocks TVS Motor Company and Eicher Motors.

Shares of TVS Motor have zoomed 85 per cent so far this year, recording new historic peaks on successive basis, whereas Eicher Motors continues to hover around its all-time high and has soared 40 per cent till date.

Among other two-wheeler stocks - Bajaj Auto and Hero MotoCorp too have logged strong gains, rising up to 15 per cent and 5 per cent, respectively, thus far in 2022. 

To understand the stock performance of two-wheelers and their likely future outlook, here’s a technical insight:-

TVS Motor Company Ltd (TVSMOTOR)

Likely target: Rs 1,350

Upside potential:  17%

After surpassing the 2017 barrier of Rs 724 in late 2021, the stock encountered a sudden sell-off. After this selling pressure was overpowered in mid-2022, as the stock rejigged on the positive side, and broke out resolutely. The present momentum indicates a rising outlook for the medium-term. Technically, the stock now seems headed towards Rs 1,350, holding the support of Rs 1,060, followed by Rs 975 levels. CLICK HERE FOR THE CHART

Eicher Motors Ltd (EICHERMOT)

Likely target: Rs 4,000

Upside potential:  11%

Even though there is a negative divergence on the Relative Strength Index (RSI), the stock price action is not letting momentum to sour. The immediate support for the stock is seen at Rs 3,400 and thereafter at Rs 3,200. Until these key cushions are not annulled, the stock chart points to a new record high. The momentum could even help the stock scale Rs 4,000-mark. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO)

Outlook: 200-DMA support

Shares of Bajaj Auto have retraced to the 200-day moving average (DMA) support of Rs 3,605 after hitting the upper ceiling at Rs 4,100 level. So if things go well for this stock, and it does holds the 200-DMA, the pullback rally could regain momentum to Rs 4,100 back and even may takeout this hurdle and rally ahead. However, if 200-DMA support gets broken the stock could dip to Rs 3,400 level. CLICK HERE FOR THE CHART

Hero MotoCorp Ltd (HEROMOTOCO) 

Outlook: Trend Sideways 

After making resilient efforts to leap over the 200-DMA set at Rs 2,594, shares of Hero MotoCorp seems on the verge to lose the upside grip. This will come true as and when the stock falls beneath Rs 2,500 mark, its significant support. A break below this cushion would take stock to Rs 2,400 level. On the other hand, a breakout above 200-DMA could trigger a rally towards Rs 2,750.   CLICK HERE FOR THE CHART